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Explore below to discover tips and tricks to make the most of your buying and selling experience.
Should I Use a Local Real Estate Agent?
Should I Use a Local Real Estate Agent? Whether you’re buying or selling a home, it can be hard to come to terms with the fees split among agents involved in a real estate transaction, leading many to wonder “should I use a local real estate agent at all?” In this article, we’ll cover the benefits of using a real estate agent and why using a local real estate agent is always a good idea. Benefits to Sellers Local real estate agents understand the local market Real estate agents are experts at navigating national and local market shifts. They have access to and can properly interpret market data to help you make informed decisions, such as deciding your home’s listing price, offering guidance on how to prepare your home for selling, and how to market your home effectively. Local real estate agents understand local buyers Although each buyer is different, local real estate agents are facilitating enough transactions to identify trends among local buyers, e.g. what buyers are looking for or are willing to compromise on. Your real estate agent will be able to anticipate common buyer concerns and be your advocate when you go toe-to-toe with buyers and their agents during negotiations (as well as every stage of the transaction thereafter)! Local real estate agents have large local networks When working with a local real estate agent, you will gain access to their networks which will increase the pool of local buyers. Local real estate agents can leverage their social media presence, the Multiple Listing Service (MLS) and other resources specific to their agency to find more people that are ready to purchase a home. Real estate agents have proper insurance Real estate agents have Errors and Omissions Insurance. Errors and Omissions (E&O) insurance is a form of liability protection that covers additional potential losses that wouldn’t normally be covered by most traditional liability insurance. E&O insurance allows for more protection in the selling in case something were to go awry. Real estate agents can handle the paperwork There are numerous disclosure and regulation documents involved in the selling process and without experience or real estate knowledge, it can be difficult to understand all the legal jargon. Real estate agents understand all the financial documents involved in the process, making it significantly easier for them to handle hefty amounts of paperwork involved. Errors or misunderstandings that would otherwise derail a transaction can be easily avoided with a real estate agent. Benefits to Buyers Local real estate agents will get you a better price Local real estate agents are more likely to get you a better price for your home because of their knowledge of what’s fair for the area. Their experience will also help you build a strong offer and save time when it comes to negotiations, as they’ll know what else is worth negotiating aside from the purchase price. Local real estate agents have network advantages Local real estate agents have broad local networks that include property owners that most buyers don’t have access to. Access to this network is incredibly valuable as a buyer and will help you discover homes that you may not have known were an option, thereby increasing your chances of finding something that checks all your boxes. Real estate agents are motivated to find you a house It’s not a bad thing for real estate agents to be motivated by what they gain from the sale or purchase of a house. This keeps the process moving along! If you try to go it alone, there’s a higher chance of obstacles not being resolved as quickly as they could with an experienced real estate agent. Realtors® follow a code of ethics Not everyone knows the difference between a real estate agent and a Realtor®. While both must pass the licensing requirements with the state, Realtors® take it a step further by taking the National Association of Realtors® Code of Ethics trainings to help maintain the integrity of the real estate industry. The NAR’s standards are more strict than state laws that govern real estate agents. If you have any questions about the process of finding a Realtor® or are currently looking, stop by our office or give us a call to learn more. We’re here to make your real estate dreams come true!
How to Become a Homeowner
Between high purchase prices and lack of inventory, becoming a homeowner might feel like a distant dream for some these days. Let us give you some hope! Even if you’re not in a position to buy right this instant, there are things you can do to get on the path to becoming a homeowner. In fact, you might be feeling pretty good about your options by the end of this list! Save Your Money to Get Your Own Place Before you roll your eyes, we know that you know to save for a downpayment. However, there are additional costs associated with the home-buying process that may not be so obvious and so it’s better to think about them early in the process. Appraisal Appraisals are required by the lender to make sure the home is a good investment and you’ll likely need an appraiser recommended by your lender. The appraisal cost will depend on the size of the home but typically range from $400-$600. Inspection Inspections aren’t required in Washington state but we think spending the $400 (or so) is well worth discovering a hidden flaw in the house that could either be a dealbreaker or addressed and covered by the seller. Earnest Money While not required, it’s common to put down what’s called “earnest money” after your offer is accepted which you can think of as a deposit on the home purchase. The amount is typically 1-3% of the purchase price but the good news is that it will end up as a credit on your closing statement! If the idea of a downpayment has you feeling down, just know that it’s possible to get your own place for no money down or even as little as 3.5%. As always, we recommend analyzing your budget to cut back on what you can because the higher the down payment, the more you’ll save on interest. To Become a Homeowner, Improve Your Credit! We’re sure that this comes as no surprise. However, it’s not always clear where to start… Building your credit score is rarely a quick fix, so it’s important to start improving before you even start looking. Here are elements that factor into your credit score ranked by most to least impactful. Payment History If nothing else, always ALWAYS make the minimum payment on time! Utilization Aim to use 15% or less of your total credit limit. If you pay off your card each month, you won’t have to pay any interest. In some cases, you may be able to ask your credit card company to increase your limit and thereby reduce your utilization. Just make sure you do this responsibly, as it could trigger a hard inquiry. Collections Prevent derogatory marks on your credit record because they can stay on there for 7-10 years! Age of Credit You don’t have to go into debt to establish good credit. So, definitely don’t avoid it because having no history will do you harm. To assess your creditworthiness, lenders need to see proof of how you use credit. The longer your credit history, the better! Total Accounts The more accounts you have, the better, but this doesn’t mean you need to open a bunch of credit cards. You can build credit with car loans, personal loans, federal education loans, phone plans, and by being an authorized user on someone else’s credit card. Hard Inquiries Too many inquiries into your credit can be a red flag to lenders, so be selective when applying for anything that requires a credit check. Calculate What You Can Afford Monthly Take a long hard look at your current expenses. Then, consider the added expenses that come after a sale goes through, such as utilities, potential HOA fees, and incidental expenses (like a hot water tank going out). It’s critical to calculate what you can afford to spend on a mortgage on a monthly basis because there is a chance you may get pre-approved for a home loan amount that you can’t realistically afford. Get Pre-approved for a Home Loan You need to have a clear idea of what you’re pre-approved for so you know your price range when looking for a house. In a competitive market, there’s no time to wait until you fall in love with a house to then start the process of pre-approval. Besides, it can be a time-consuming process. To shorten the time, gather all your important financial paperwork into one place, such as your last two years of tax returns, bank statements, loans, and other assets such as savings or retirement accounts. If you’re not acquainted with the different types of home loans that are out there, start by researching the most common types below. There are pros and cons to each, so don’t be afraid to ask your lender questions. Private Loans Conventional - 3-20% down payment Government-backed Loans While these loans make it easier to get your own place, they often require private mortgage insurance (PMI) which is a monthly fee on top of your mortgage. Once your mortgage reaches 80% loan-to-value, which is either paying off 20% of your mortgage or a combination of your payments and home value increasing, PMI can be removed from your loan. FHA - 3.5% VA - 0% USDA - 0% Choose a Real Estate Agent Early Similar to mortgage pre-approval, don’t wait on finding a real estate agent. You may need to shop around to find one you like! In all seriousness, finding the right agent can save you thousands of dollars. We’ve seen it, time and again! Your agent should be your top advocate, and work to get you the best deal while making the whole process as smooth and low-stress as possible. If you have any questions about how to become a homeowner, we invite you to drop by anytime and chat with our agent on duty! We’ve helped so many people like you achieve their dream of homeownership, so let us know when you’re ready to make a plan!
Skagit County 2022 home sales stabilize; median sales price still rises 8.6% to $543,000
Rising mortgage rates tapped the brakes on Skagit County homes sales in 2022 but homeowners still saw their property values rise, according to managing broker Shelah Inman of Brown McMillen Real Estate in Burlington. The median price of a Skagit County home sold in 2022 rose 8.6% to $543,000. Inman said that’s a good increase in any year except in comparison to 2021, when it skyrocketed 18.5%. Skagit home sales kept rising for the first half of 2022, but mortgage rates that eventually doubled and hit a peak around 7% for a 30-year loan cooled off the housing market here and elsewhere, according to Inman. She prepared a report based on data from the Northwest Washington Multiple Listing Service. Prices pulled back some from their 2022 highs and fewer homes sold. The number of Skagit County homes sold dropped to 1,783, which is 13% below the total just two years ago, Inman said. Inman said a 30-year fixed mortgage rate was around 3% at the start of 2022 but steadily began to rise. When the 30-year rate went above 5% in late summer, the dramatic effect it had on monthly home payments dampened buyer interest and resulted in some price adjustments, she added. “Skagit homeowners are doing well whenever annual appreciation is close to 10%,” Inman said. “Our home market can’t sustain increases close to 20% for long. However, Skagit County still is a great place to raise families and retire, we have more housing inventory and the 30-year mortgage rate has stabilized around 6.5%. Instead of a frenzied market with multiple offers for homes, we now have more of a balanced market for buyers and sellers.” Anacortes leads Skagit County in median home sales price ($775,000, up 20.2%), followed by Burlington and Mount Vernon, both at $540,000. While countywide home sales dropped, they rose in two communities: La Conner (19.5%) and Sedro-Woolley (8.9%). The median sales price, average sales price, number of units sold and average days on the market (DOM) before a sale for Skagit County and individual communities for all of 2022, with percentage comparisons to all of 2021, follow. Skagit County – Median price, $543,000, up 8.6%; average price, $616,656, up 7.7%; units sold, 1,783, down 4.6%; DOM, 25, up 19.1%. Anacortes – Median price, $775,000, up 20.2%; average price, $865,587, up 15.6%; units sold, 321, down 7.0%; DOM, 25, unchanged Burlington – Median price, $540,000, up 11.3%; average price, $605,217, up 5.8%; units sold, 219, down 11.7%; DOM, 23, up 27.8%. La Conner – Median price, $500,000, unchanged; average price, $589,355, down 2.8%; units sold, 92, up 19.5%; DOM, 30, up 36.4%. Mount Vernon – Median price, $540,000, up 3.9%; average price, $596,977, up 7.3%; units sold, 597, down 14.6%; DOM, 23, up 27.8%. Sedro-Woolley – Median price, $500,000, up 13.4%; average price, $526,326, up 9.4%; units sold, 379, up 8.9%; DOM, 24, up 20.0%. MEDIA NOTE: If using this information, please attribute it to Shelah Inman of Brown McMillen Real Estate.
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